The 7 Most Common Mistakes Borrowers Make When Shopping for Loans

1. The 7 Most Common Mistakes Borrowers Make When Shopping for Loans

2. Not shopping for a loan- There are many debtors or borrowers who are with polite credit get run through with loans intended for people with bad credit. So loans are often more beneficial to a broker which are calling as sub prime loans. And this is the reason why inferior moral mortgage brokers may push for sub prime mortgages and commercial loans. In case the debtor does not know what the restrictive interest rates are for someone with their good credit standing, they can easily spend thousands of dollars more than they need to spend……..See more at http://hardmoneyloan.blogspot.com/2014/02/not-shopping-for-loan-big-mistake-of.html

3. Assuming that every Internet company that advertises getting you up to 4 loan offers can really save you time and money The brokers who contact you afterwards will promise to beat all the other prices, but have neither the capacity nor the intention of delivering such prices. Since the other companies do not provide the means to compare quotes, you are at the mercy of brokers whose objective is to rope you in and move the process along until it is too late for you to back out. At that point, they raise the price using any of a dozen tricks available for that motive. See more at http://hardmoneyloan.blogspot.com/2014/02/assuming-that-every-internet-company.html

4. Assuming that you can shop Lender A today and Lender B tomorrow Because of market disbelief, prices gained on different days will not be able to compare. Unless you shop all the sources on the same day, you are wasting your valuable time. It is a great problem. We should always aware about this mistake. See more at http://hardmoneyloan.blogspot.com/2014/02/assuming-that-you-can-shop-lender-today.html

5. Do not think that the lenders who offer the best price on one type of loan will also have the best price on another There are many borrowers who start out thinking he wants a fixed-rate loan, and then switches to an adjustable. Borrower starts out thinking he wants 30-year term, and then switches to a 15-year term. Borrower starts out thinking he wants a loan at zero-point, and then switches to 3 points. Generally I would advice you that do not think that the lenders who offer the best price on one type of loan will also have the best price on another. Such switches may reject your shopping because the loan provider with the best price in one loan category may not have the best price in another. See more from http://hardmoneyloan.blogspot.com/2014/02/do-not-think-that-lenders-who-offer.html

6. Selecting the loan Provider offering the best price over the telephone, on the radio or in the newspaper If you cast a spacious adequate net you are bound to find an evildoer who will beat all the several prices, but has neither the capacity nor the intention of delivering such prices. His motive is to rope you in and move the procedure along until it is too late for you to back out. He raises the price at the point by using any of a dozen tricks available for that purpose. So, be on the alert. You should be alert about this because this market is changing every moment…… See more at http://hardmoneyloan.blogspot.com/2014/02/a-great-mistake-of-borrowers-selecting.html

7. The Last Two Big Mistakes Not For Shopping for a Loan Not Being Prepared Not having financial records that verify income and assets and not fixing your credit prior to applying for a loan but keepiing your fingers crossed, hoping your credit will allow you to qualify for a loan, are among the worst mistakes one can make. Your credit score can make a major difference in loan quality. Not having documentation ready can mean higher rates and often even a declined loan. This applies to any co-borrower as well as the primary borrower, as often the co-borrower's financial information is just as important as the borrower's. See more at http://www.lendinguniverse.com/BorrowersMostCommonMistakes.asp#Not_being_prepare Too many borrowers with decent credit get stuck with loans meant for people with poor credit. So-called "subprime" loans are often more profitable to a broker. That’s why less ethical mortgage brokers may push sub prime mortgages and loans. If the borrower doesn't know what the prevailing interest rates are for someone with their good credit standing, they can easily pay thousands of dollars more than they need to pay. See more at http://www.lendinguniverse.com/BorrowersMostCommonMistakes.asp#Not_shopping_for_a_loan